Gangnam-style becomes most-viewed YouTube clip of all time: Psy's cut

Gangnam boost: shares in Psy's father's semiconductor co surged (Source: S&P)

Psy's "Gangnam Style" has just passed Justin Bieber's "Baby" to become the most-viewed YouTube clip of all time.

As NBR ONLINE types, Gangnam has 808 million views to Baby's 804 million by YouTube's official count.

(Overall Bieber maintains a healthy lead, with 3.9 billion views of various videos on his YouTube channel. Psy remains a one-hit wonder.)

But is there any point to this view-fest in the cut-and-paste world of free internet media?

Actually, yes, says entrepreneur Jason Calacanis in his newsletter.

Once a clip gains thousands of views, Google (which owns YouTube) shares ad revenue with the owner.

The amount is negotiable, and depends on volume. Rates are variously quoted at $US1.50 to $US5 CPM, but Mr Calacanis says partners tend to get a CPM of $US2 (that is, $US2 for every 1000 times the clip is viewed).

He estimates Psy would have received the standard $US2 for the first 200 million views (or $US400,000), then an $US8 CPM after that as the break-out nature of the hit allowed him to negotiate a higher rate.

An $US8 CPM would mean $800,000 for every 100 million views from 200 million up to the current 800 million - or another $US4.8 million, taking Psy's total YouTube haul to $US5 million and counting.

Go on, watch it again.

Gangnam style has also sold a reported 600,000+ on iTunes at $US1.29 a pop.

Apple takes 30% from any iTunes sale.

Assuming Psy gets the standard artist royalty of 12% on the remainder ($0.93) then he would pocket just under 11 cents per download - or around $US66,000.

A $US50 million kick?
The most bizarre, and lucrative, Gangnam Style revenue boost is an indirect one.

Psy's father, Park Won-ho, is chairman and controlling shareholder in DI Corp, a South Korean semiconductor company.

DI Corp, the semiconductor company of which 

"[Psy] has also worked his magic on his father's software firm, helping it double in value since singer and dancer Psy burst onto the global scene in July," Reuters said in a recent report.

D I Corp saw its market cap surge to 113.5 billion won, or $US101.29 million, although it has since pulled back (see S&P Capital IQ chart above).

This article is tagged with the following keywords. Find out more about My Tags

Comment & Question

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7740 -0.0003 -0.04%
AUD 0.9511 0.0005 0.05%
EUR 0.6324 -0.0002 -0.03%
GBP 0.4954 0.0001 0.02%
HKD 6.0039 0.0001 0.00%
JPY 92.5100 -0.0050 -0.01%

Commods

Commodity Price Change Time
Gold Index 1195.4 -2.890 2014-12-19T00:
Oil Brent 61.4 1.580 2014-12-19T00:
Oil Nymex 57.1 2.910 2014-12-19T00:
Silver Index 16.0 0.096 2014-12-19T00:

Indices

Symbol Open High Last %
NZX 50 5518.5 5545.0 5539.3 -0.21%
NASDAQ 4752.6 4782.1 4748.4 0.36%
DAX 9901.3 9901.3 9811.1 -0.25%
DJI 17778.0 17874.0 17778.2 0.15%
FTSE 6466.0 6566.9 6466.0 1.23%
HKSE 23158.3 23189.6 22832.2 1.25%
NI225 17511.0 17621.4 17210.0 2.39%